European Investment Bank (EIB), the financing institution of the EU, has appointed Citi as its collateral management and collateral custody agent responsible for the EIB’s derivatives collateral management functions.
Citi’s OpenCollateral service would take responsibility for marking derivatives collateral to market, carrying out margin calls and settlement responsibilities. The EIB will continue to value its own derivatives transactions to preserve confidentiality with counterparties. Citi will also act as global custodian for the securities collateral.
“EIB has decided to continue the outsourcing of its derivatives collateral as this has been proven to be a cost effective and flexible solution, which can be efficiently combined with internal valuation of the derivatives transactions,” said Anneli Peshkoff, director of EIB’s treasury department. “The automatic scalability of the outsourced functions to the size of the collateral portfolio has been an important consideration in the decision.”
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